Miami’s Brickell condo market continues to evolve, and it is hard to ignore the growth of condominium projects with the ever-changing downtown skyline in recent years. Yet, for the first time since 2012, there are more completed condo units (5,180) than the number of under construction units (5,078), with a total of 3,365 units are expected to be completed by the end of 2017. This is important because Miami is no stranger to the real estate booms and busts from recent decades; developers are not building beyond what the market can absorb. At the same time, as these developments are being completed, an increasing amount of resale inventory is hitting the market. As reported by the Miami Herald, “According to Cranespotters.com, more than 3,600 existing condo units are currently on the market in the downtown area – 26-month supply (six months is considered the ideal month of inventory).” As a result, condo prices are not only experiencing a downward pressure as they level out, but in some cases creating opportunities for buyers as motivated sellers decrease prices.
Aside from the large amount of development going on, Brickell’s robust rental market is also a strong indicator of continued demand for the downtown lifestyle, particularly from millennials. Many of these renters are paying premium prices, and doing so happily for the lifestyle that it brings. This is demonstrated in the new conventional rental inventory being delivered and stabilized quickly with brisk absorption at rents 25% – 35% higher than competitive older apartment product, demonstrating the continued demand for downtown as a lifestyle.
The Bottom Line:
Due to the growing condo inventory, units in Brickell are becoming more affordable. Now may be the time for buyers to take advantage of the market shift in Brickell as sellers adjust their prices. As for sellers, Brickell condo prices are leveling out and facing a downward shift. Sellers may have to list their home more competitively to attract buyers. However, because of the shift in the market, buyers will be on the hunt and sellers should price accordingly to take advantage of that. It is also important to keep in mind that Miami condo inventory is expected to grow in 2017, and buyers will have more listings to choose from.